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TRY sits as one of the worst...........>

TURKISH LIRA
TURKISH LIRA: TRY sits as one of the worst performers across EMFX so far
Thursday, with RUB not far behind, as markets respond to reports suggesting a
law allowing the Turkish central bank to transfer profits to the Turkish
treasury, directly funding the central government. The Turkish authorities
approaching the issue a few weeks ago, originally backing down after fearing a
negative market response, but this suggests the bill may be pressed through
regardless.
-USD/TRY rallied to touch 5.7933 on the news, but stopped well short of both
yesterday's and the week's highs at 5.8165/5.8319 respectively. Supporting the
currency somewhat are comments from the Turkish President this morning, who
talked down the prospect of imminent US sanctions, stating that he "never got
such an impression in our talks with Trump so far".
-USD/TRY vols are equally sanguine, with the 1-week measure retreating to 14.6
points today and close to multi-week lows. Erdogan meets face-to-face with Trump
at the G20 meeting on Saturday 29th - 1305 Osaka time, 0505BST/0005ET.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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